World Bank Warns Global Rate Hikes Could Trigger Recession in 2023
The World Bank has warned that the interest rate hikes by central banks across the world could trigger a global recession in 2023.
It's pointed out that the rise in rates has been done by central banks "with a degree of synchronicity not seen over the past five decades" to tackle soaring prices,
This warning comes ahead of monetary policy meetings by the US Federal Reserve and Bank of England next week, which are expected to increase key interest rates.
On Thursday, the World Bank said the economy on a global level was in its steepest slowdown following a post-recession recovery since 1970.
According to a study "the world's three largest economies - the US, China and the euro area - have been slowing sharply," it said.
"Under the circumstances, even a moderate hit to the global economy over the next year could tip it into recession."
The World Bank also urged central banks to coordinate their actions and "communicate policy decisions clearly" to "reduce the degree of tightening needed".